Statement re subsidiary investment

EZZ Steel Company - S.A.E.

Cairo, 12 December 2021 - Ezz Steel (EGX: ESRS; London Stock Exchange: AEZD),

the Board of Directors of Al-Ezz Dekheila Steel Company - Alexandria (EZDK), Ezz Steel's subsidiary, in its meeting on December 9, 2021 approved the purchase of 18% of the total equity of the "Egyptian Steel Group for Management of Steel Plant Projects Company, SAE ("Egyptian Steel").

EZDK is listed in Egyptian Stock Exchange (EGX) and traded under the Code: IRAX. EZDK disclosed to EGX the following summary of its board decisions (posted on 12 December 2021):

1. Ratifying the Independent Financial Advisor's fair value study of the "Egyptian Steel Group for Management of Steel Plant Projects Company, SAE ("Egyptian Steel").

2. Approving the Independent Auditor's report on the projected financial statements, included in the Independent Financial Advisor's fair value study of "Egyptian Steel".

3. Approving EZDK's purchase of 18% of the total equity of "Egyptian Steel" from Mr. Ahmed Hamdi Abu Hashima, the founding partner, and the Abu Hashima Steel Company for Management of Steel Projects, for a total value of EGP 2.5 billion; the amount will be paid from EZDK's own resources.

4. Authorizing the Chairman and the Managing Director, jointly or separately, to sign sale of shares agreements and contracts, issue share purchase orders, sign all documents necessary to complete the process of transferring ownership of shares, and submit the necessary documents to implement the investment to the Egyptian Financial Regulatory Authority (FRA), The Egyptian Stock Exchange (EGX), The General Authority for Investment and Free Zones (GAFI) and all other involved governmental institutions.

https://www.egx.com.eg/ar/NewsDetails.aspx?NewsID=218313

https://www.egx.com.eg/ar/NewsDetails.aspx?NewsID=218314

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